March 29, 2010
MetalCorp Limited Announces $1.4 Million Non-Brokered Private Placement of Flow-Through Units
Toronto, Ontario Canada (March 29, 2010) - MetalCorp Limited (TSX-V: MTC) is pleased to announce a proposed non-brokered private placement of up to 7,000,000 flow-through units (each, a "Unit") at a price of $0.20 per Unit (the "Offering") for aggregate gross proceeds of up to $1,400,000. Each Unit will be comprised of one flow-through common share and one-half of one transferable flow-through common share purchase warrant. Each whole warrant (a "Unit Warrant") will entitle the holder to purchase one non-flow-through common share at any time for a period of two years, at a price of $0.35 in the first year and $0.45 during the second year.
MetalCorp will pay finder's fees of up to 6.5% of the aggregate gross proceeds of the Offering in cash and finder's warrants equal in number to up to 6.5% of the number of Units sold. Each finder's warrant will entitle the holder to purchase one finder's unit comprised of one non-flow through common share and one-half of one non-flow-through warrant (on the same terms as the Unit Warrant) at $0.20 per each such finder's unit.
The gross proceeds to MetalCorp from the Offering will be used to fund exploration expenses which qualify as "Canadian Exploration Expenses" (within the meaning of the Income Tax Act (Canada)) in connection with MetalCorp's projects in Ontario, including its Pickle Lake and Red Lake (Black Bear) gold properties, and projects at its Hemlo East gold property.
All the securities issued pursuant to this private placement will be subject to a four (4) month hold period. Completion of the private placement is subject to receipt of all required regulatory and other approvals, including acceptance by the TSX Venture Exchange.
This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The flow-through common shares and the Unit Warrants comprising the Units or issuable upon exercise of the Unit Warrants and finder's warrants will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent an applicable exemption from the registration requirements.
MetalCorp has 56,349,471 common shares outstanding and approximately $1,000,000 in cash and no long-term debt. To find out more about MetalCorp visit its website at www.metalcorp.ca.
For further information, please contact:
Naomi Nemeth, President and CEO
T: +1 416 363 9428
Neither IIROC nor the TSX Venture Exchange accepts responsibility for the adequacy or accuracy of this release. This press release is not for distribution to United States newswire services nor for dissemination in the United States.
Except for statements of historical fact contained herein, the information in this press release may constitute "forward-looking information" within the meaning of Canadian securities law. Other than statements of historical fact, all statements are "Forward-Looking Statements", including the size and pricing of the Offering, that involve various known and unknown risk and uncertainties and other factors, such as market conditions. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". Except as otherwise required by applicable securities statutes or regulation, MetalCorp expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
© 2018 MetalCorp Inc.